African Potash has sent the first 20,000 tonnes of fertiliser under a landmark trade – its first from the COMESA agreement, which will provide it with US$10.16mln of gross revenue.
African Potash set for US$10.16mln revenue from landmark first trade
The AIM-listed group has gone from the corporate equivalent of hibernation as potash mine developer to become a fertiliser trader.
As revealed in October, the firm has inked an agreement to sell 50,000 tonnes of fertiliser to an unnamed Zambian firm.
This was to be made up of 25,000 tonnes of NPK compound and 25,000 tonnes of urea, of which 20,000 tonnes has been today satisfied.
The stock was delivered to the port of Beira in Mozambique and arrival to the customer in Lusaka, Zambia, is expected within 3-5 days.
African Potash’s executive chairman Chris Cleverly told investors: We are now starting to gain real momentum as our strategy to generate immediate cash flow from trading begins to reshape our company and its potential future financial performance.
“Today’s trade alone will generate a gross revenue of $10,160,000 for African Potash, achieving a margin within the previously announced range, clearly highlighting the considerable value of participating in the fertiliser trading market.
“I believe we have still only begun to scratch the surface of the potentially enormous market for fertiliser in Africa.”
The sale price achieved was US$508 per tonne.
COMESA is a free trade union of 20 African countries and the plan is to supply 500,000 tonnes a year initially under the deal.